Hello there, Brian.
Let me help you categorize your vendor refund transaction in QuickBooks Online (QBO).
Recording a vendor refund depends on how you record your purchases. In your case, we can create a vendor credit and ensure it hits the expense account you use for a specific vendor.
You’ll want to take note that this process is for recording purposes within your QBO. This option allows you to match your real-life bank transactions to your company file.
Here’s how:
- Click the + New icon and select Vendor Credit.
- Select your vendor in the Vendor dropdown.
- Enter the Category details or Item details depending on how you record your purchases. Usually, this is the category, product, or service you’re getting credit for.
- Lastly, click Save and Close.
Next to it, deposit the money you got from the vendor:
- Click the + New icon and select Bank Deposit.
- Select the account where you got the refund in the Account dropdown.
- Enter the details needed in the Add funds to this deposit section. For the Account section, please select Accounts Payable so you can tie the refund to the vendor credit.
- Once you fill out all the information needed, click Save and Close.
Then, let’s pay the bill to connect the bank deposit to the vendor credit
- Select + New and click Pay Bills.
- Choose the bank deposit you just created. You’ll see the amount of the vendor credit in the Credit Applied field. The Total payment should show US $0.00.
- Select Save and Close.
After following the steps above, go back to your bank feeds and look for the vendor refund transaction. Then, a match should be available in the feeds. You can click the Match button under the Action column to link them.
Once done, you can refer to this article to reconcile your account. This ensures the accuracy of your book and avoids any discrepancies.
Let me know if you have more concerns about your bank transactions. The Community is 24/7 available to help you. Have a good one!
